Low activity levels in local Chinese steel pipe market

The Chinese domestic steel pipe market has seen some slight downticks in prices in the past week, while some prices have also moved sideways. 
 
As of July 3, in China's three main steel markets, i.e., Shanghai, Guangzhou and Beijing, the average price of 20# (GB/T8162-1999) grade 108 mm x 4.5 mm seamless pipe now stands at $650/mt, with 20# (GB/T8163-1999) grade 219 mm x 6 mm seamless pipe at $691/mt. Meanwhile, on the same date, Q195-215 grade 48 mm x 3.25 mm welded pipe and Q215-235 grade 114 mm x 3.75 mm welded pipe prices in the above markets are standing at $561/mt and $567/mt respectively. All the above prices include 17 percent VAT.
 
China's domestic seamless pipe market has seen slight decreases in certain local markets in the past seven days, while prices in other areas of the country have remained stable. The softening of billet prices and the low trading volume have contributed to the small decreases in question, though traders state that the price decreases have not helped to boost demand. Overall, for the coming week demand in the domestic seamless pipe market is expected to remain slack, while the market trend is expected to vary between sideways and slight downward movement.
 
The local Chinese welded pipe market has indicated a stable trend in some areas and a slightly decreasing trend in others in the past week. The slack demand situation and the soft trend of steel strip prices are the main negative factors affecting the market. It is believed that the domestic welded pipe market will fluctuate on a slight downtrend in the week ahead.